Welcome!

Big Data Journal Authors: Bob Gourley, Liz McMillan, Jnan Dash, Elizabeth White, Pat Romanski

News Feed Item

Crew Energy Inc. Announces 2013 Budget Targeting 15% Increase in Liquids Production- January 7, 2013

CALGARY, ALBERTA -- (Marketwire) -- 01/08/13 -- Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce its Board of Directors has approved a 2013 capital budget of $219 million. The 2013 program is designed to focus on the Company's operating strategy to invest in the highest rate of return projects while also further defining and capturing hydrocarbon resource. Funding of this program will come from cash flow from operations and bank debt. The 2013 program is expected to provide 15% liquids growth spearheaded by the drilling of 101 (99.0 net) wells with 87% of the wells targeting oil and 13% of the wells targeting liquids rich natural gas.

In 2012, Crew achieved its target exit rate of 28,000 boe per day prior to the closing of the Kobes disposition (sale of 625 boe per day) and is estimating fourth quarter production based on preliminary field estimates of approximately 27,000 boe per day, an increase of approximately 3% over the prior quarter. With the sale of 625 boe per day and the shut-in of 400 boe per day of natural gas production that became uneconomic with the expiration of a transportation contract late in 2012, Crew is currently producing approximately 27,000 boe per day. In the fourth quarter, the Company drilled 24 gross wells including one well at Kobes which was included in the fourth quarter disposition, one well each at Septimus and the Deep Basin which were part of the accelerated 2013 program; 13 wells at Princess including a horizontal well that tested at a rate of 800 boe per day based on 144 hours and eight heavy oil wells at Lloydminster which included three successful horizontal wells at Wildmere that tested two separate Mannville formations. We also initiated water injection on our eighth waterflood at Princess as part of our long term enhanced recovery project and completed a produced water disposal well at Septimus that will eliminate approximately $1.0 million of water handling costs annually.

Production growth is forecasted to accelerate throughout 2013 with a target exit rate of 29,000 to 30,000 boe per day and an annual average of 27,500 to 28,500 boe per day. This year's program will maintain a focus on secondary recovery programs at Princess and Lloydminster with a forecasted four to six new projects planned. These investments provide some of the highest rates of return in the Company and are expected to measurably reduce corporate declines over time. Capital will also be allocated to land retention and resource capture initiatives at Septimus and in the greater Kakwa area of the Deep Basin. Complementary asset acquisitions are continually being monitored and evaluated but are presently not part of the exploration and development budget.

Crew plans to invest in its four main operating areas; Lloydminster, Princess, Septimus and the Deep Basin in 2013. The Company's ability to invest at attractive economics in these areas has been enhanced by the Company's 2013 hedging program with 48% of forecasted natural gas production and 37% of forecasted liquids production hedged at attractive prices.

At Lloydminster, Crew expects to drill 60 wells where the Company is following up on a number of 2012 exploration and development successes on lands acquired in 2011 and on recently purchased Crown land. Company owned processing infrastructure provides excellent logistics and superior netbacks and the low capital costs consistently generate exceptional returns even in the current wide heavy oil differential environment. In addition to the drilling program, the Company plans to recomplete 40 to 60 wells in the area in 2013.

At Princess, Crew will focus on the optimization of existing production, implementation of three to five new waterfloods and the drilling of 21 wells. Crew's existing waterfloods have been very successful in stemming declines in pools where they have been implemented. Longer term, the Company is targeting decline rates in the area to be reduced to the 20 to 25% range. Based on this program, it is expected this area will generate significant positive free cash flow in 2013.

In the greater Septimus area, Crew will drill 11 (9.0 net) wells with seven (7.0 net) wells targeting liquids rich natural gas and two (2.0 net) wells targeting oil at Tower. Crew has reduced costs in this area by over 10% by optimizing capital efficiencies through pad drilling and modified completion techniques which have also resulted in improved individual well performance. The Company has also invested in water source and disposal infrastructure in the area to further reduce our cost structure, all of which has resulted in enhanced economics with rates of return improving from 20% to approximately 40% despite the current commodity price environment. Crew also plans to work with the owner of the Crew operated Septimus gas plant to expand the facility from its current capacity of 46 mmcf per day to 64 mmcf per day with construction expected to commence in 2013. The planned increase in capacity will allow for increased production from the area in 2014 and a corresponding decrease in per unit operating costs of greater than 15% due to a further improvement in operating efficiencies.

In the greater Kakwa area of the Deep Basin, Crew plans to drill seven (6.8 net) wells targeting liquids rich natural gas. This area is characterized by lower decline production and high liquids content in the 90 bbls per mmcf range of which roughly a third is condensate driving favorable returns. Crew is evaluating a more significant infrastructure expansion for the Kakwa area to take advantage of proposed pipeline expansions and provide for future growth.


2013 CAPITAL EXPENDITURE BY TYPE                                            
----------------------------------------------------------------------------
                                                                            
                                                                  ($million)
Drilling and Completions                                              151.8 
Equip/Tie-in/Facilities                                                25.6 
Optimization                                                           18.3 
G & A/Environmental/other                                              12.8 
Land & Seismic                                                         10.5 
                                                                 -----------
Total Capital                                                         219.0 

Crew's budget and guidance are best estimates based on certain assumptions including operating results and commodity prices and will be regularly monitored by management. Additional information regarding our 2013 budget can be found within the latest presentation on the Company's website at www.crewenergy.com. Our primary goal is to proactively manage our capital program as it relates to operational success and fluctuating commodity prices with a goal to maintain financial flexibility and achieve our production goals.

CAUTIONARY STATEMENTS

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the Company's planned capital expenditure program, drilling plans, estimated and expected production levels and commodity mix; anticipated reductions in decline rates at Princess, future commodity prices, the future differential between WTI prices and WCS prices, future royalty rates, the future exchange rate for the Canadian dollar to the US dollar, operating costs, transportation costs, general and administrative costs, interest costs, the Company's cash flow from operations, future results from operations; future development and exploration activities and related capital expenditures and adequacy of anticipated methods of financing, the number of wells to be drilled and completed and related production expectations; and the amount and timing of capital projects.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; the ability of Crew to successfully market its oil and natural gas products; ability to improve upon historical recovery factors.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Crew is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "CR".

Contacts:
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850

Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859

Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O
(403) 513-9628
www.crewenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@BigDataExpo Stories
MapR Technologies on Tuesday announced the availability of free Hadoop On-Demand Training for developers, analysts and administrators which represents a $50M in-kind contribution* to the broad Hadoop community. The Hadoop training program is a multi-course curriculum designed to expand worldwide adoption of Hadoop technology. The curriculum provides engaging and interactive video lessons, hands-on exercises, labs and quizzes, enabling professionals to acquire valuable Hadoop skills and knowledge...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your onlin...
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore's Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at Big Data Expo, Mason Katz, CTO and co-founder of StackIQ, disc...
Midway through the decade, the experts from Veeva Systems – a leader in cloud-based software for the global life sciences industry – look at what’s on the horizon over the next five years. Their forecasts are informed by a vision for what’s next in technology and insight gleaned from Veeva’s 200+ life sciences customers worldwide. Overall, these predictions reflect how new innovations will enable faster time to market, evolving commercial models, and new ways to support physicians and patients. ...
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
Software Defined Storage provides many benefits for customers including agility, flexibility, faster adoption of new technology and cost effectiveness. However, for IT organizations it can be challenging and complex to build your Enterprise Grade Storage from software. In his session at Cloud Expo, Paul Turner, CMO at Cloudian, looked at the new Original Design Manufacturer (ODM) market and how it is changing the storage world. Now Software Defined Storage companies can build Enterprise grade ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...